Compressed natural gas and piped natural gas prices in cities such as Delhi and Mumbai are expected to be hiked by 10-11 per cent in October 2021 as the government-dictated gas price is set to rise by about 76 per cent. The government, using rates prevalent in gas-surplus nations, fixes the price of natural gas produced by firms from fields given to them on nomination basis, every six months. The next review is due on October 1, 2021.
The price, referred to as administered rate, is expected to rise to $3.15 per million British thermal unit (mmBtu) for the period from October 1, 2021 to March 31, 2022 from the current $1.79 per mmBtu. Further, the rate for gas from deepwater fields such as KG-D6 of Reliance Industries Limited and BP Plc would rise to $7.4 per mmBtu in October 2021.